What are the wrong reasons to franchise your business?

The Wealthy Franchises three wrong reasons to franchise:

Starting a franchise can be a great step towards prosperity for a company. However, there are wrong reasons to franchise your business as well. You need to have a number of corporately owned stores that are profitable before you even think about franchising. Read below and let us know if you think we missed any reasons!

 1. To alleviate a cash storage.

A franchisor who sells franchises to anyone with a pulse to get the initial franchise fees to pocket the cash or to satisfy accounts payable, is heading for failure.

Wrong reasons to franchise


2. To increase sales of products or services by creating a captive market that is sold franchises primarily with that in mind.

While many franchisors require that the franchises buy products from the franchisor or from suppliers approved by the franchisor, making a profit on the sale of such products ought not to be the reason for the franchise system.


3. To satisfy the ego of the franchisor, which if the primary driving force of franchising, can be the single greatest inhibitor to a healthy franchisee/franchisor relationship.


If you are looking to invest in a franchise system, or you need advice on how to franchise your business, you can call Alistair Vigier at 778-676-3808.

The Wealthy Franchise is currently selling for Bon Macaron and HART Legal. We suggest you Google both of them to find out more about their company and brand. If you are interested in learning more about either company, you can contact us.

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